FICO Falls 7% After Hours as It Holds Mortgage Score Price Flat at $10
Fair Isaac (FICO) fell more than 7% in after-hours trading, to $757.69, after announcing at 4:15 PM ET that it will hold its wholesale mortgage score price flat at $10 for lenders in its Preferred Program, as investors reassess the pricing-power story that drove its growth.
Shares of Fair Isaac (FICO) fell 7.07% to $757.69 in after-hours trading on Friday, after the company announced at 4:15 PM ET that it will hold its wholesale mortgage price for the FICO Score at $10 for lenders and brokers enrolled in its Preferred Program. The stock had closed the regular session at $815.31, down 0.95%.
What FICO announced
| Item | Detail |
|---|---|
| Price | $10 per score, flat year over year |
| Who qualifies | Lenders and brokers enrolled in the Preferred Program and committed to FICO through participating tri-merge reseller partners |
| Scores covered | A bundle of the Classic FICO Score and FICO Score 10T |
| CEO comment | Will Lansing said FICO is "ensuring lenders have access to the trusted and predictive tools they need to assess risk with confidence" |
The release gives no reason for holding the price. The reaction suggests investors read it as the end of the compounding wholesale price increases on mortgage scores that drove much of FICO's recent revenue and margin growth, and as a sign the company is defending market share against VantageScore while homebuyers' origination costs draw public and regulatory scrutiny.
How the stock got here
| Date | Development |
|---|---|
| Early September | The Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac to let all mortgage lenders use VantageScore; FICO fell about 17% the next day. |
| Sept. 28–29 | FHFA said Fannie and Freddie will use a single pricing grid that includes VantageScore. FICO fell 8% after hours, then more than 26% on Sept. 29 to $616.72. |
| Oct. 6 | FICO said it would cut about 15% of its positions, with roughly $27 million in pre-tax charges. |
| Oct. 12–16 | The stock rebounded 16% on the week, from $668 to $771, with no single catalyst identified. |
| Oct. 23 | Closed at $815.31; fell 7.07% after hours to $757.69. |
By our calculation, at the after-hours price FICO is about 55% below its 2025 year-end close of $1,691. The $10 per-score price matches what FICO's Direct License Program charges for the standard model, while VantageScore has been priced at about $0.99 per score. Mortgage scoring made up about 43% of FICO's March-quarter revenue.
Why it matters
The flat price changes the growth assumption more than the revenue base. The FICO Score is a pillar of mortgage lending, and the stock had already been re-rated on the risk that VantageScore would erode its pricing advantage. Holding $10 flat gives lenders in the program price certainty, while analysts will have to decide how much slower mortgage score growth is built into estimates. Not every lender has moved: United Wholesale Mortgage has said it will keep using FICO Scores on all broker credit pulls and add FICO Score 10T.
Source: FICO press release (Oct. 23, 4:15 PM ET). This is informational, not a recommendation to buy or sell.
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